Bryan Scott
Otago Regional councillors yesterday voted to consult the
public over a possible merger between Port Otago and Lyttelton
Port, despite deeming such a move to be insignificant.
Port Otago is expected to make a formal recommendation on a
merger proposal to the regional council this year.
It is in discussions with Lyttelton Port over the possible
move, which was recommended by an independent report that has
not been made public.
Regional council corporate services director Wayne Scott told
councillors at yesterday's finance and corporate committee
any merger, while important, was not significant under the
Local Government Act.
Decisions not deemed significant could be made without public
consultation.
However, staff recommended, in the 2010-11 draft annual plan,
the council consult the public anyway.
A report to the committee said as the merger would only be
approved if it benefited Otago, and the fact the port would
remain wholly council-owned, meant merging with Lyttelton was
not significant.
Crs Doug Brown and Bryan Scott spoke strongly against the
notion a merger was not legally significant.
Cr Brown said mandatory consultation for significant
decisions was to stop councils making poor decisions and to
promote transparency and accountability.
It would be wrong not to consult the port's owners, the
ratepayers, over merging with another port.
Committee chairman Cr Duncan Butcher said using the draft
annual plan to let the public have a say was sensible.
It meant that if the regional council had to make a final
decision, public feedback was already in, which allowed it to
make a decision when required by the port board.
Cr Scott said the value of the port, and the fact the merger
would entail shared control of the port, meant he was could
not understand why it was not significant.
Councillors voted unanimously for the staff recommendation to
consult over the possible merger.
Crs Brown and Scott voted against a second recommendation
which deemed the merger not significant.
An export-led recovery meant Port Otago had a
better-than-expected profit for the six months to December
31, yesterday's meeting was told.
Deputy chairman Ross Black said the port's after-tax profit
of $9.7 million, was 80% up on the corresponding period in
2008.
The result included a one-off $1.3 million gain from sale of
property and plant, and $4 million from appreciating
investment property values.
The regional council received an interim dividend last month
of $2.5 million.
The port handled 240 vessels for the six months, 9% fewer
than in the corresponding time last year, mainly due to a 20%
drop in container vessels.
Despite this, container throughput grew 4%, driven by
exports, which offset the reduction in imports.
A decline in cruise ships was offset by increases in forestry
and petroleum tankers, with particularly strong growth in
logging exports.
Council chairman Stephen Cairns said the "stunning result"
was a "huge delight" and he was pleased the bleak outlook
feared by the port's board had not materialised.
Chief executive Geoff Plunket said it had come through a
period of volatility well, and in the first two months of
2010 the recovery continued.
- eileen.goodwin@odt.co.nz
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